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The Community Facilities (CF) Program currently utilizes seven existing regulations to service the CF Direct Loans (7 CFR part 1951, subparts E, F, and 0; 7 CFR part 1955, subparts A, B, and C; and 7 CFR part 1956, subpart C). The CF Program will be removed from the existing seven regulations. The Agency will place all regulations for servicing the loans and grants of the CF program into one streamlined regulation; that regulation will apply solely to the CF Program. While this proposed regulation consolidates seven existing regulations, it does not remove any of the servicing options currently available.  All authorities authorized in the Consolidated Farm and Agricultural Act are included in this proposed regulation. The proposed regulation will provide internal and external users with a single regulation to implement all authorities available, providing more streamlined service.

Statement of Need:

The service regulation covering only CF policies and the proposed changes will result in one streamlined, user-friendly document. The servicing regulation will improve the Agency’s ability to service its portfolio and ensure that the Government’s investment is protected and maximized.

Summary of the Legal Basis:

This action will not raise any novel legal or policy issues and this action is not in conflict with Executive Order 12866.

Alternatives:

The other alternative is to stay status quo and not change the rule. This alternative would not be in the best interest of the Government.

Anticipated Costs and Benefits:

There are no expected long-term costs associated with this change as it will incorporate information, Administrative Notices and Unnumbered Letters that have been issued and reissued for many years. Some modifications to forms and systems will be required, but costs will be minimal. Savings may be realized in more efficient and timely servicing options, which may reduce the number of delinquencies and foreclosures.

Risks:

The proposed action will have no financial impact on the public or the Agency.